Recently you might have heard about the record breaking art sale of $69million, created by artist Mike Winkelmann, also known as BeepleOne. This is the third largest sale in art in history….. and it was an NFT. With a price tag like this, one could assume that NFT’s are here to stay.
So what exactly is an NFT? NFT stands for nonfungible token. Which basically means it is one of a kind. It is an asset verified using blockchain technology, in which a network of computers records transactions and gives buyers proof of authenticity and ownership. The current boom is mostly for digital assets, including images, GIFs, songs or videos. Most importantly, NFTs make digital artworks unique, and therefore sellable.
Now, every influencer is using NFTs to monetize digital goods that have previously been cheap or free. The technology also responds to the art world’s need for authentication and provenance in an increasingly digital world, permanently linking a digital file to its creator.
NFT’s have been around since 2010, but it wasn’t until 2017 with the sale of Crypto Kitties(a site where people could buy and ‘breed’ digital kitties)did it become mainstream.
So I don’t know about you but the first thing that comes to my mind after learning what the definition of an NFT is what is a fungible token? A fungible token is anything that can be exchanged…. something like money. For example if I gave you a $20 bill you can trade me any combination of bills that is equal to 20 for an even exchange. Where as with NFT’s its unique, not always 1/1 but there is a finite amount.
So Why NFT? If you are sitting here scratching your head thinking this is dumb, I could just look at whatever you have for free because its on the internet. You are not alone, many people do not understand how an NFT holds value. This goes back to the uniqueness of it. “Imagine you owned a pair of expensive Air Jordans. If Nike went out of business, those sneakers wouldn’t suddenly disappear from your closet. Why should digital goods — like a Fortnite skin or an original Beeple — be any different?”
Lastly, where and how can we buy NFT’s? To buy and NFT you would need cryptocurrency. Each blockchain has its own separate NFT token standard.For instance, if you create NFTs on top of the Binance Smart Chain, you will only be able to sell them on platforms that support Binance Smart Chain assets. Which means you could not do anything on Open Sea(another marketplace)because its an ethereum based marketplace. A few major NFT market places are: NBA Top Shot, Open Sea, Rarible, Mintable. Thank you for taking the time to read through this article, I hope it helped clarify a few questions on NFT’s.
Source: https://www.esquire.com/entertainment/a35742083/what-are-nfts-explained/, quoted Mike Winklemann